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Random Orthogonal Matrix simulation with exact means, covariances, and multivariate skewness
Journal article   Peer reviewed

Random Orthogonal Matrix simulation with exact means, covariances, and multivariate skewness

M Hanke, S Penev, W Schief and Alex Weissensteiner
European Journal of Operational Research, Vol.263(2), pp.510-523
263
01/12/2017
Handle:
https://hdl.handle.net/10863/4024

Abstract

We develop a simulation algorithm that generates multivariate samples with exact means, covariances, and multivariate skewness. If required for financial applications, absence of arbitrage can be ensured. Potential applications include the simulation of risk factors for the risk management of financial institutions. We use the Kollo measure of multivariate skewness, which is more informative for these applications than the Mardia skewness previously used in this context.
url
http://www.sciencedirect.com/science/article/pii/S0377221717304514View

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